Rupee steady as SBI halts trading in spot markets

The rupee was steady amidst low volumes and reports that State Bank of India had halted trading in onshore spot foreign exchange markets because of the country wide banking strike.

The rupee was almost unchanged at 55.52 to the dollar in trading that was thin. Dealers believe that the real price of the currency would be reflected following the end of a two-day banking strike.

Bank employees have begun a two day strike to protest the proposed reforms in the banking sector. The strike is likely to affect clearing and the availability of cash at ATMs, which could be badly affected, as security guards of the ATMs belong to the unions are participating in the strike.